The benchmark indices closed on a strong note ahead of US banks' stress test results on Thursday. Positive global cues were also supportive to our markets. Metal, financial, telecom and infrastructure stocks witnessed buying interest while FMCG, cement, oil marketing and select technology companies' shares remained under pressure.

The 30-share BSE Sensex closed 164.19 points or 1.37% higher at 12,116.94 and the 50-share NSE Nifty shut shop at 3683.90, up 1.62% or 58.85 points over previous close. But the broader indices outperformed the benchmark indices - the BSE Midcap Index was up 101.10 points or 2.75%, to settle at 3,776.94 and the Smallcap Index rose 2.66% or 110.59 points, to 4,263.60.

Metals hogged the limelight on the back of better April sales numbers and price increase. Short covering and fresh buying were seen in metal stocks. The BSE Metal Index went up 619.71 points or 8.22%, to close at 8,155.08. SAIL reported April sales at 8.5 lakh tonnes as against 6.6 lakh tonnes, a growth of 28.79% and Tata Steel April sales went up 31% at 4.52 lakh tonnes (YoY); both stocks were up 7.41% and 8.76%, respectively. Among the others, Hindustan Zinc, Sterlite, JSW Steel, Jindal Saw, Hindalco, JSL, Sesa Goa and NALCO gained 5-14.8%.

Among the financial stocks, Andhra Bank was up 5.28% ahead of its Q4 numbers. PNB, SBI and Axis Bank were up 3.3-3.5%. ICICI Bank gained 1.53% and HDFC Bank was up 0.40%. The BSE Bankex closed 68.52 points or 3.72% higher at 1,912.44. HDFC shot up 4.4%, which is not a part of Bankex.

US banks' stress test results will be announced on Thursday. Leaked stress-test reports suggest that most banks were healthier than previously thought. US Treasury Secretary Timothy Geithner said that none of the 19 banks being examined are at risk of insolvency.

There were reports that Bank of America, Wells Fargo and Citigroup probably need additional capital. However, JPMorgan Chase, Goldman Sachs, American Express, Regions Financial and Bank of New York Mellon will need no additional capital.

Sectoral Indices
The BSE Realty Index was up 1.9% or 44.34 points, to 2,382.51, as Orbit Corporation, HDIL, Unitech and Indiabulls Real gained 2.6-5%. However, DLF fell just 0.43%.

Pharma stocks like Biocon, Glenmark, Cipla, Wockhardt, Sun Pharma Advanced, Ranbaxy Labs and Dr Reddys Labs were gainers. The BSE Healthcare Index rose 1.74% or 53.82 points, to 3,154.89.

Punj Lloyd, L&T and Siemens gained 1.5-2.5%. BHEL was up just 0.28% in the capital goods space. Respective Index closed at 8,573.92, up 130.95 points or 1.55%.

There was a mixed picture in the oil & gas and Auto sectors, though indices gained 126.44 points or 1.5% to 8,534.09 and 1.23% or 44.59 points, to 3,680.71, respectively.

In the oil & gas space, Cairn India shot up 7%, as crude oil prices increased to USD 57.9 a barrel during the day. Reliance Industries and Reliance Petroleum were up 1.55-1.8%. ONGC was up just 0.26%. However, HPCL, IOC and BPCL declined 1.6-1.9%.

Maruti Suzuki and Tata Motors gained 3-3.7%. Hero Honda, Bharat Forge and Ashok Leyland went up 0.5-1.6% in the auto space.

In the telecom pack, Bharti Airtel shot up 2.92% and Reliance Communication gained 1.85%. MTNL, Tata Teleservices and Idea Cellular went up 0.7-1%.

Power and IT indices closed flat at 2,214.49 and 2,785.25, respectively. Wipro surged 5.80. Tech Mahindra and HCL Tech gained 1.5-3.7%. However, Infosys and TCS fell 0.5-0.9%.

However, FMCG Index slipped 15.13 points or 0.71%, to 2,103.50, as HUL, Godrej Consumer and ITC lost 1.25-1.7%.

Cement stocks were witnessed selling pressure; Ambuja Cements, ACC and Grasim gained 1.5-3%.

Market breadth was positive due to gains in broader indices. About 1921 shares advanced while 1053 shares declined. Nearly 138 shares remained unchanged.

Global cues
Global markets were positive. At the time of closing of Indian equities, European markets were strong. The FTSE went up 104 points, to 4,500. The CAC was up 57 points, to 3,340 and the DAX gained 73 points at 4,953.

The US futures were also positive; the Dow Jones Futures rose 54 points, to 8,525 and the Nasdaq futures were trading at 1,431, up 1.25 points.

Asian markets also ended higher. Nikkei surged 4.55% (it opened after a week holiday). Hang Seng shot up 2.28% and Straits Times gained 2.87%. Jakarta Composite went up 1.7%. Kospi was up 0.55%. Shanghai and Taiwan Weighted rose just 0.09-0.19%.